Online banking fears for banks and customers

Heightened awareness of online banking security breaches may lead the up-and-coming trend of online banking to fizzle as customers fear hackers accessing their money.

Despite many banks’ efforts to beef up their security measures for online banking that include number fobs and password checks, the lack of awareness on the consumers’ side about security may actually cause people to fear using the new financial security measures.

According to a survey by enterprise content management firm Tower Management, over half of employees unknowingly store company data on insecure networks with one per cent admitting they do not know where they have filed certain data.

New measures have been in place to help banks implement safer practices such as recent proposals to share identity fraud information within financial institutions, yet a negative perception surround customer satisfaction persists.

Andrew Maloney, financial services market director for RSA Security, told BBC News that banks were sensitive to the downside effect of extra security measures.

“There could be too much security and there’s a danger of over-selling a new technology,” he said.

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